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Debt and the Modern Stress Epidemic

20 Apr 2021

debt crisis

During Stress Awareness Month businesses across the UK join forces to increase public awareness about both the causes and cures for our modern stress scourge.

Studies have shown a distinct correlation between debt problems and mental health problems, individuals who struggle with debt are sadly more likely to also suffer from stress, depression and anxiety.* Generation Wealth Management Director Andrew Waller has a history of working in debt management and is keen that the company work as a force for good, providing guidance and support to those struggling with the ripple effect of debt. In this blog Andrew talks in more detail about debt, how to manage it and the UK’s stress epidemic.

Debt facts – did you know?

  • On average every British resident spent £969 on interest alone last year**
  • 318 people are declared bankrupt every day in the UK (October to December 2019)**

These are startling figures and something needs to change.

My top tip when in debt is be honest with yourself and close family and to talk about the issues and how you can help yourself to manage the situation. If the debt is serious you may of course need to seek professional help from one of the many support groups and charities who are more than happy to help. Don’t hold back. Address debt now or it will only get worse.

Don’t get hung up on the past either, what’s happened has happened and can’t be undone, the what if’s will only serve as painful reminders of how life could have been different. The most important thing is to learn from your experiences and avoid repeating old mistakes. I very often speak to people who tie themselves up in knots rehashing the past, remember it is the here and now that matters.  It is much better to accept what’s happened and focus on taking positive steps to improve your life right here, right now.

Can you explain the term debt spiral?

In short a debt spiral is the habit of robbing Peter to pay Paul. It can be easy to convince yourself that next month will be different, that this is a short-term issue.  But in fact this just makes the dark cloud hover over your head and feel worse. Feelings of shame and fear can make it incredibly difficult to ask for help, but asking for help is not admitting weakness, it’s showing real strength of character.

In the case of debt, a problem shared truly is a problem halved. Taking that first – often scary – step and admitting your debt struggle will make a huge difference – it’s the first significant step towards getting rid of all that financial burden.

How can someone with a history of debt learn to budget?

If you’ve read our previous blogs you will know that I am a big fan of budgeting. If we are discussing debt, then the term budgeting is never far away. Budgeting is the key to unlocking a stress free, debt free life.

Creating a budget – and sticking to it – is not only a practical first step it will also mentally help you feel better. Knowing what money to spend and that your bills are covered will give you a sense of control and peace of mind that money really cannot buy.

Where can people look for support?

I know that debt can feel isolating. For some reason we struggle to open up and admit to our friends and family that we are struggling, the secrecy required to keep debt a secret can in itself become a stressor. If you can confide in someone, the relief will be palpable. A problem shared truly is a problem halved.

The Generation Wealth Management team can help too. We understand debt and know how to help. If you’d like to speak to one of our experts please do get in touch.

 

* The Emotional Effects of Debt – Denial, Stress, Fear, Depression

**Debt statistics 2020: How far in the red is the UK? | finder.com

 

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